A dynamic demand analysis for electrical energy by class of consumer

Conclusion In the preceding discussion, the price responsiveness of consumers has been estimated. The results not only indicate consumer reaction to changes in price is significant, but also they should completely dispel any argument over the efficacy of the market mechanism to restore equilibrium between supply and demand. Note, however, that demand is relatively inelastic, implying that a large change in price is needed to induce a sufficient change in the quantity demanded for the restoration of equilibrium. If the problem is to curtail the sales of electricial energy, the solution is obvious. The author would like to thank Joseph R. Antos and J. Wilson Mixon of the Bureau of Labor Statistics for helpful comments. The views expressed are those of the author and do not reflect the policies of the Bureau of Labor Statistics or the views of other BLS staff members.